In a report released today, Jeff Osborne from TD Cowen maintained a Buy rating on BorgWarner (BWA – Research Report), with a price target of $40.00.
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Jeff Osborne has given his Buy rating due to a combination of factors including BorgWarner’s ability to maintain strong margins in challenging market conditions. Despite a year-over-year decline in sales, the company managed to achieve an adjusted operating margin of 10.2% in the fourth quarter and 10.1% for the full year, which surpassed the guidance. This was possible due to strategic cost controls and restructuring efforts, which helped to offset industry pressures such as foreign exchange and battery pricing challenges.
Furthermore, BorgWarner’s ability to outperform the market production decline, with a less significant drop in organic sales, highlights its resilience and potential for future growth. The company’s efforts in securing multiple business awards across different propulsion types, including combustion, hybrid, and electric vehicles, support its stability and growth outlook. While there are some concerns, such as goodwill impairments and regional market challenges, the company’s proactive measures in restructuring and cost management provide a strong foundation for its Buy rating.
Osborne covers the Technology sector, focusing on stocks such as NEXTracker, Inc. Class A, Enphase Energy, and Cerence. According to TipRanks, Osborne has an average return of 2.8% and a 41.16% success rate on recommended stocks.
In another report released on January 31, Bank of America Securities also maintained a Buy rating on the stock with a $42.00 price target.